Knight Frank tips Dubai villas market, Moscow and Miami to outperform global real estate
Dubai's villa property market is forecast to be one of the strongest performers in the world next year, according to Knight Frank.
The global real estate consultancy named the emirate alongside Moscow and Miami as the prime property markets likely to shine brightest next year.
It said villa prices in Dubai were set to be pushed higher the limited supply of luxury homes, especially on Palm Jumeirah and Emirates Hills.
"Dubai provides another good news story; here we expect prices in the luxury villa market to rise by between 5-10 percent in 2013," Knight Frank said in a new report.
"The volume of enquiries from professionals relocating from the UK and Asia is rising while the supply of high quality family homes is largely static," it added.
The report also said that Indian and Iranian buyers were driving the demand for luxury homes in Dubai.
Knight Frank said that villa prices in the emirate had increased between 10-20 percent in the first three quarters of 2012.
According to its report, prime residential property prices in 14 cities worldwide are forecast to rise by 2.5 percent on average in 2013.
It said it only expected to see prices decline in three markets - Paris, Geneva and Shanghai – but in each case by less than five percent.
Knight Frank warned that a sharp slowdown in the global economy is the highest risk for the world’s prime residential markets closely followed by government cooling measures.
Kate Everett-Allen, head of Knight Frank’s international research team, said: "The search for unique 'trophy' homes will gather pace in 2013 due in part to the increasingly high standard of new projects.
"Tall towers in the main gateway cities are already capturing the attention of an expanding number of HNWIs and we expect this trend to intensify."
She added: "Since Lehman Brother’s collapse the world’s luxury markets have come full circle. The global downturn meant luxury prices tumbled as market confidence ebbed away but within 12 months key markets such as London, Hong Kong and Shanghai were rallying once more.
"Prime property has done more than just weather the economic storm and outperform its mainstream counterparts, it has prospered as a direct result of the uncertain economic climate."